[Beijing Direct News Network May 7th] (Daily economic news)Affected by the novel coronavirus pneumonia, 2020 has become the blowout year of the live broadcast of the electricity supplier. On April 24, there was even a "crash" phenomenon during the live broadcast of Dong Mingzhu and Luo Yonghao, two famous figures in the business circle.

On the first day (April 23), a spokesman for the Ministry of Commerce said that the monitoring of big business data showed that there were more than 4 million live e-commerce broadcasts in the first quarter. Home appliances, kitchenware, fitness equipment and so on are favored by consumers, with the sales volume increasing by more than 40% year on year.

Who would have thought that the initial growth of e-commerce live broadcasting, which is now on the wind, is extremely difficult. Tiktok was launched in 2016, and the Kwai and jitter were also launched in 2017 and 2018 in the. In the early stage of development, the traffic accumulation of e-commerce live broadcast was very slow. Taking Taobao live as an example, until the end of 2017, there were only a few million daily active users (daus), and the volume of transactions was not large. However, since March 2018, the traffic and total turnover (Gmv) of Taobao live TV have both soared, and the dau soon exceeded 10 million. In 2019, the number of online live users in China is about 500 million, and Gmv reaches 433.8 billion yuan.

At present, it is of great significance to promote the development of new online consumption and realize the integration of online and offline consumption. In my opinion, under the epidemic situation, e-commerce live broadcasting is expected to usher in greater development. At the same time, vigorously developing e-commerce live broadcasting is also an effective way to release consumption potential.

E-commerce live broadcasting: a new channel mode based on private domain traffic

The initial prototype of e-commerce live broadcast is to intersperse goods in the network live broadcast, and then develop into a new channel mode of selling goods or services in the form of network live broadcast. The selling methods of e-commerce live broadcast can be divided into two categories: self selling and looking for someone to take. The difference between the two is that "self selling" uses the store's own private traffic. "Find someone to take" is the private domain traffic of "professional anchor". Because of the high degree of attention paid to the online Red anchor, the public is used to calling the e-commerce live broadcast sales products "live broadcast with goods". Compared with the previous offline channels and traditional e-commerce channels, e-commerce live broadcasting has the following three advantages:

One is high integration. The traditional offline sales mode is usually the separation of marketing and sales. The marketing department is responsible for advertising, research, etc., and the channel department is responsible for stores, stores, distribution, etc. After the rise of e-commerce, offline decentralized channels are integrated online, and market research can also be completed by using channel data. Traditional advertising has also shifted to digital advertising and direct buying traffic. The emergence of e-commerce live broadcast directly integrates marketing and goods selling. Traffic, advertising, goods selling and interaction are completed in one scene, greatly improving the sales efficiency.

Second, the sales expenses can be quantified directly. Traditional advertising accounts for the majority of sales expenses. Although there are similar ratings data, the effect of traditional advertising is obviously not quantifiable. Digital advertising is to rely on "thousands of display expected revenue" to achieve quantitative. According to industry statistics, the cost of e-commerce for traffic purchase is about 10% - 25% of the expected sales. But whether the traffic bought can be converted into actual sales is not known in advance. E-commerce live broadcast can make the effect of sales fee quantifiable. Take professional anchor live broadcast as an example, the anchor charges according to CPS, that is, the Commission is charged according to the transaction. Therefore, compared with other channels, e-commerce live broadcast has a huge cost control advantage.

Third, the private domain traffic resources are huge. At present, new modes of private traffic commercialization emerge in endlessly, such as e-commerce live broadcast, self media, user group, marketing number, video number, etc. even large platforms like Suning are encouraging employees to sell goods through wechat friend circle. Among these new models, e-commerce live broadcast is undoubtedly the most successful one in the commercialization of private traffic. Compared with public domain traffic, private domain traffic resources are larger and can grow continuously through natural fission and other ways. Moreover, the distribution of private traffic is very scattered, the competition is sufficient, and there will be no traffic monopoly. This provides a strong driving force for sustainable growth of e-commerce live broadcast. The positive role of e-commerce live broadcast in promoting consumption